EU imposes restrictions on Chinese medical suppliers in response to unfair trade barriers

The European Commission has formally introduced restrictions aimed at Chinese medical device firms, citing evidence of unfair barriers imposed by China against EU manufacturers. The move marks the first use of the International Procurement Instrument.

The European Commission has announced new restrictions targeting Chinese medical device companies in response to what it described as discriminatory barriers against European manufacturers. The decision follows a detailed investigation revealing "clear evidence" that China has been preventing EU-made medical devices from accessing its public procurement market.

This marks the first time the International Procurement Instrument (IPI), which took effect in August 2022, has been used. The IPI is designed to promote fair access for EU companies to procurement opportunities outside the bloc.

"Our aim with these measures is to level the playing field for EU businesses. We remain committed to dialogue with China to resolve these issues," said Trade Commissioner Maroš Šefčovič.

Under the new rules, Chinese companies are barred from bidding on public contracts for medical devices in the EU single market that exceed €5 million. Additionally, successful bids must contain no more than 50% of inputs originating from China. Exceptions will be made where no viable alternative suppliers exist.

The European Commission stated that these measures are proportionate to China's own restrictions and are intended to guarantee continued access to critical medical equipment for EU healthcare systems. The decision is said to be consistent with international trade obligations, including World Trade Organization (WTO) rules, and the EU has no binding procurement commitments with China.

EU-based medical device firms have faced longstanding difficulties accessing China’s procurement market, despite China accounting for 11% of EU medical device exports in 2022. The Commission’s investigation centered on China’s government procurement law, which enforces a "Buy China" policy, requiring public institutions to prioritize domestic products and services.

The probe identified barriers such as opaque approval processes, discriminatory certification practices, ambiguous national interest clauses, and unsustainable pricing requirements. According to a 2025 Commission report, 87% of public procurement contracts for medical devices in China involved exclusionary and discriminatory practices against EU suppliers.

The new measures come at a sensitive time in EU-China relations, as both sides seek to manage disputes amid shifting global dynamics, including the aftermath of trade wars and ongoing US-China tensions. The upcoming EU-China Summit, scheduled for the second half of July 2025 in Beijing, is expected to be a key milestone in renewed dialogue.

Meanwhile, reciprocal trade actions continue: China has extended its anti-dumping probe into EU pork imports by six months, while the EU recently imposed tariffs of up to 45% on Chinese electric vehicles, highlighting a pattern of targeting politically sensitive industries ahead of high-level negotiations.

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